The Massachusetts Homestead Act protects homeowners from having their home seized or sold to pay their debts. As of 2015, every Massachusetts homeowner is automatically provided homestead protection for debts up to $125,000. Homeowners who file a declaration of homestead with the state are protected for debts up to $500,000.
Massachusetts passed the Homestead act to provide homeowners with reasonable protections to stay in their homes and not lose everything to creditors. Sec.State.ma.us provides comprehensive information about the legal details of the Homestead Act and what homeowners must do to get full homestead protection.
The Homestead Act applies to homes that are the primary residence of the homeowners as well as some homes that are owned by trustees but occupied by individuals who do not own the home. The Homestead Act does not protect homeowners against foreclosure for falling behind on their mortgages, but it protects homeowners from losing their homes to many other types of creditors. The Homestead Act enables homeowners to keep their roofs over their heads even if they declare bankruptcy or struggle to pay back debts due to unforeseen circumstances, such as job loss or getting in an accident that their insurance does not fully cover.